18 November 2008

W.Va. Investment Down 25%

"The ongoing Wall Street crisis has washed away a fourth of the value from West Virginia's investment portfolio - a $2.5 billion decline - since the state's budget year began July 1," The Associated Press reports.

Executive Director Craig Slaughter delivered the bad news to a special joint meeting of House and Senate committees during this week's interim legislative session. The severe hit will affect next year's state budget, has prompted a spending review by the Manchin administration and has erased a portion of the state's "rainy day" fund.

But tax revenue projections and other factors suggest the state remains better off than many others. And "citing Wall Street's historical ability to rebound," Slaughter said "the board plans to stick with its investment strategy and stay in the market at current levels," AP reports.

"Slaughter expects to recoup most of the losses over time, depending on the pace of the eventual recovery, except for about $49.3 million invested in such financial crisis casualties as Lehman Brothers and Washington Mutual," the article said.

The Charleston Gazette and MetroNews (with audio of Slaughter) also have reports.


clear eyes said...

Surely this is no surprise to anyone. The only question is how much damage the increased taxes, protectionism and global warming myth-based energy policie being planned in D.C. will do to the market. If the lefties get all they want, it could take a long time to recover from the resulting global depression.

Anonymous said...

Right, because the free market has done so well for us so far. It's a good thing we're not already facing a global depression! Oh, wait. . .